The evidence of bullish sentiment was reinforced by the positive trading today that did not let the indexes trade back below the T-line. If you do your own research, you will find the extremely accurate results of a trend upon seeing a candlestick buy signal and a close above the T-line producing excellent probabilities of an uptrend remaining in progress until you see a candlestick sell signal and a close back below the T-line. Last week, the indexes gapped up above the T-line. The Dow consolidated back to the T line over the next few days. Today’s positive trading revealed the Dow could not close below the T-line. Candlestick signals are the graphic depiction of investor sentiment. The T line is a natural/Fibonacci support and resistance level of human nature. When you combine the two, you have an extremely high probability trend indicator. A simple assessment can be made when the indexes are trading above the T line, the uptrend is still in progress.The strength of today’s trading is compounded by the fact that profit-taking occurred during the middle part of the day followed by buying coming back into the close. The uptrend remains in progress, the T line is verified that fact. Continue to stay predominantly long. Note that there are numerous highs of the day occurring in individual stocks going into the close. Investor sentiment is not hard to evaluate based upon the candlestick formations.
PACB can still be bought on positive trading tomorrow, Doji sandwich.
SFIX did not execute today but can still be bought on positive trading tomorrow, frypan bottom breakout confirmation.
DAN stay long, good frypan bottom breakout.
The frypan bottom patterns and the J-hook patterns, two of the most recognizable candlestick patterns, are producing extremely good profits.TSLA has been moving up steadily confirming a frypan bottom pattern, even though the overall market trend has been choppy during that timeframe. Numerous candlestick charts have been producing strong profits during this slow uptrending market coming back up above the T line. The major advantage of utilizing candlestick patterns is twofold. First it produces high probabilities of being in the correct direction and secondly, the magnitude of the move is usually extremely strong profit trades, much stronger than merely uptrending stocks during an uptrend. Will trade talks with China get confirmed? It doesn’t matter! The investor sentiment perceives the future looking better for investments based upon anticipated results as well as all the other factors investors make when making buying or selling decisions. Chat session tonight at 8 PM ET.
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Good Investing,
The Candlestick Forum Team
